California Weighs Landmark Tax on Billionaires
WHO:
Los Angeles Times - The Service Employees International Union–United Healthcare Workers West crafted Proposition 40; chief of staff Suzanne Jimenez said it was an emergency response to expected healthcare cuts.
Los Angeles Times - Proposition 40 opponents included Google co-founder Sergey Brin, who donated more than $100 million, and former Google leader Eric Schmidt and venture capitalist L. John Doerr, who each donated $40 million.
Los Angeles Times - Sen. Bernie Sanders rallied in support of Proposition 40 in downtown Los Angeles and called it “the most important ballot measure in the country.”
Los Angeles Times - Planned Parenthood Affiliates of California chief executive Jodi Hicks opposed Proposition 40, saying, “We are opposed to this particular proposal because we think it does more harm than good.”
BBC - Meta chief executive Mark Zuckerberg is considering moving his primary residence out of California.
BBC - Zuckerberg’s wealth is estimated to exceed $200bn.
BBC News - California voters are deciding whether the state’s mega-rich residents should pay billions of dollars.
WHAT:
Los Angeles Times - Proposition 40 would impose a one-time 5% tax on many assets of billionaires who lived in California as of Jan. 1.
Los Angeles Times - Campaigns had raised more than $351 million; opponents raised $316.7 million, while supporters raised nearly $34.3 million.
Los Angeles Times - Propositions 41 and 42 would each nullify Proposition 40 if either received more votes.
Los Angeles Times - Proposition 41 would require audits for new state special taxes and bar taxes exempting their revenue from a state spending limit; Proposition 42 would prohibit new taxes on retirement holdings, individually owned assets and other personal savings.
Los Angeles Times - Proposition 40 supporters had $1.6 million on hand as of Oct. 17.
BBC - California is considering a proposed tax on billionaires, described in the article’s headline as potentially the world’s first.
BBC - Meta agreed to a new stock deal giving Zuckerberg more shares in the company.
BBC - Zuckerberg could owe as much as $12.5bn if the measure passes.
BBC News - The proposed tax would raise money for improvements to healthcare.
WHERE:
Los Angeles Times - Sanders held a Proposition 40 rally in downtown Los Angeles.
BBC - The proposed tax concerns California, where Meta is headquartered.
BBC - Zuckerberg was considering moving his primary residence out of California.
WHEN:
BBC - Zuckerberg told Meta’s board “last month” that he was thinking about moving his primary residence. *(Omitted because the date is in the past.)*
BBC - The article says the measure could pass “in November.” *(Omitted because the date is not after the current date.)*
WHY:
Los Angeles Times - The union developed Proposition 40 in response to federal healthcare funding cuts signed by President Trump; the article says the cuts are expected to reduce California’s healthcare budget by $100 billion and could cause more than 3 million Californians to lose health insurance.
BBC - Meta agreed to the stock deal to prevent Zuckerberg from leaving California and to compensate him for the billions he could lose if the measure passes.
BBC News - The proposed tax is intended to fund improvements to healthcare.
HOW:
Los Angeles Times - Meta created a new non-voting stock class that would allow Zuckerberg to sell shares to pay the proposed tax while retaining voting power; he agreed to remain in California for eight years.
(UPDATED October 24, 2026 19:04 UTC)
California voters are weighing Proposition 40, a proposed one-time 5% tax on many assets of billionaires who lived in the state as of Jan. 1, with the money intended to improve healthcare. Meta chief executive Mark Zuckerberg could owe as much as $12.5 billion if it passes, and he is considering moving his primary residence out of California. Meta responded with a new stock deal that gives him more shares and allows him to sell stock to pay the tax while keeping voting control; he agreed to stay in California for eight years. The Service Employees International Union–United Healthcare Workers West crafted the measure as a response to expected federal healthcare cuts. Supporters say those cuts could leave more than 3 million Californians uninsured. Proposition 40 has drawn major opposition funding, including more than $100 million from Sergey Brin, while Sen. Bernie Sanders rallied for it in Los Angeles.
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(UPDATED October 24, 2026 07:11 UTC)
California voters are weighing a proposed tax on billionaires that could raise billions of dollars for healthcare improvements. The measure would apply in the state where Meta is headquartered, and it could leave Meta chief executive Mark Zuckerberg facing a tax bill of as much as $12.5 billion. Zuckerberg, whose wealth is estimated at more than $200 billion, is considering moving his primary residence out of California. Meta has agreed to a new stock deal that would give him more shares in the company. The arrangement is intended to keep him from leaving the state and compensate him for some of the money he could owe if the tax passes. The proposal has been described as potentially the world’s first tax of its kind. Its fate rests with California voters, who are deciding whether the state’s wealthiest residents should pay toward healthcare improvements.